What is NRAS?
The NRAS program (National Rental Affordability Scheme) is designed to provide a method and incentive for Australian investors to buy new property, build their wealth and tangible assets, while stimulating the economy and building industry nationally whilst significantly improving the rental affordability in high growth areas for middle income Australian families.
economist Saul Eslake identifies the cause of the challenge for rental affordability by highlighting a staggering "Ninety-two per cent of investors in rental property buy established property, so it does nothing to increase the supply of housing or keep rents down..."
NRAS is short for National Rental Affordability Scheme. The NRAS scheme is a Federal and State Government backed incentive scheme creating a new investment asset class
- encourage investors to develop additional new houses for the rental market.
- provide an affordable rent program for average Australian wage earners as individuals, couples and families. It is not social housing.
- yield higher than usual returns for investors in the residential property market.
- increase the number of rental dwellings built through the stimulation of demand and investment, while supporting the building industry and related jobs and the Australian economy.
- The government aims to achieve this by providing a tax incentive for investors in NRAS properties in return for the properties being rented at a discounted rate.
The NRAS scheme is not housing commission or social housing.
There are strict guidelines for properties to qualify under the NRAS scheme. NRAS properties must be close to transport, schools, shops etc making NRAS properties desirable for tenants and property investors. There are also specified guidelines for the management of NRAS properties. The manager is responsible for ensuring that tenants meet the income criteria and that they are reviewed against the criteria every two years.
The NRAS scheme is funded for up to 50,000 dwellings but will end for new investments 30 June 2016 although owners of NRAS Properties will continue to get the tax incentives for ten years from acquisition.
NRAS Property Listing
Take a look at the extensive NRAS Properties Listing
. Enter your details and see which properties are best for your personal situation.
Negative Geared, Positive Cashflow. These forms of opportunities come around rarely.
Call 1300 67 27 28 for a quick overview or an in depth insight that you can digest in your own time. Contact us here
Positive Cashflow, Negative Geared.
Once you realise just how much you like what you hear and it all makes sense - You'll need to act fast and contact us